Reasons why the Indian Steel industries are attracting a lot of investors.


India is the second-largest crude steel producer in the world. In FY17, India produced 111.254 million tonnes (MT) of finished steel. Our crude steel production has risen to 88.4 Million Tonnes in 2017. Steel is a ubiquitous part of both the industrial and the consumer economy. Its limitless applications are complemented by a steady supply of iron ore and coke to modernized processing units for mass production. Steel Industries have been performing well for a long time, but only a few past decades have seen such massive growth, both domestically and internationally. The rising demand for steel, along with the measures taken by Indian Government is conducive to the establishment of several new steel processing industries.

 Here are a few reasons why Investors are choosing to set-up Steel Industries in India:

Steady Supply and Demand: Due to a steady supply of high-quality raw materials, the efficiency of the manufacturing process for steel has improved. With huge domestic and international demand for steel, today’s industries are exporting a huge portion of their produced crude steel and finished steel products internationally. Rising demand, well-developed markets, better supply-chain management, and constant technological developments are paving way for attracting investors to this sector.

Shares and Investments: Due to the obvious prospectus for the long-term profits, investments in this sector are rising exponentially. Shares of Steel industries perform well in the Stock Market, thus attracting investors further on. Despite facing ups and downs in the local and global markets, Steel industries survive, due to their mass production and its wide range of applications. It helps the industries to arrange to fund their upcoming projects, that in-turn adds to the company’s achievements and raises the price/value of its shares.

Profits: The steel markets as of now are very competitive for industries. Even so, the businesses of local manufacturers, mini-mills, and large corporations alike are developing, due to equally huge demand for steel, in any and all sectors like lifestyle, automobile, defense, transportation, etc. Due to high demands, the quality of steel products is also improved, as mass production wouldn’t be viable if the quality was compromised. Steel businesses are profitable due to their wide range of applications, their widespread usage, and bulk quantities of requirements.

Government Initiatives: In the recent Union Budget 2018, the Government has allotted 5.97 Lakh Crore Rupees for Infrastructure alone. At the core of every element of infrastructure, like steel rods, for reinforcement. Our Government’s focus on infrastructure and projects for restarting roadways is aiding the boost for a demand of steel extensively. It has also taken huge efforts for boosting industries for many other sectors like communication, power generation, etc. that incorporate steel to a very large extent. It realizes the potential of steel as a material, and as an industry, by taking efforts to achieve its target of production of 128.6 Million Tonnes of steel by 2021.

It is expected that the per capita consumption would increase in the years to follow, supported by rapid growth in the industrial sector, and increased expenditure for infrastructure projects in housing, railways, roads & highways, etc. The capacity of utilization of steel producers is set to increase with strong export demand and signs of revival in domestic sales. The Indian Steel Industry is on its way to glory, with socio-economic and technological developments underway. Agni Steels is proud to be a part of India’s drive to be the largest producer of steel globally.

1 comment:

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